ApplySci is a heavily venture capitalized R & D
startup. The technology is based on a unique material
developed by a research professor at a nearby University, and the
organization is led by an entrepreneur with many years experience
in hightech ventures. When the researcher entered
their focus was split between two resource acquisition issues.
The most salient seemed to be Negotiation processes with
potential partners, seeking to contact and create deals to market
and sell the technology through an industry application. On that
week the company was working with eight different companies
across five different industries, about "strategy and
dealmaking" according to the CEO. Secondly,
there was continued pressure to complete Basic research on the
material. The Research director believed "The
[material] is looking more promising," while a Manufacturing
technician was "slowly getting the mechanical process
variables under control." According to the CEO,
"[the material] is getting repeatable, predictable
results."

At the second DCP a small shift (N=2) had occurred over
the previous two weeks, mostly around strategy changes.
This shift had a nonlinear affect on resources, unexpectedly
amplifying the number and types that became salient. The
most critical resources in this phase were Decision making
processes around what deals to focus on. The office manager
decried, "The main thing we need to acquire is a unified
decision on what's going on with [a potential merger],"
while the CTO more bluntly admitted, "Our primary need is
clearcut objectives and focus." Secondly, Deal
making continued to heat up, as the CEO explained, "I'm
working on a couple of other partnerships [that] look more
successful. And the [merger] deal is very much
alive." Thirdly, the research function shifted to more
of a Development phase: "Rather than change the [process] we
need to make what we have work" {Project Scientist}.
Fourthly, Human resources became critical. This was
strongly voiced by the Founder of the medical side of the
company: "We are very weak in our development team. We need
an [analytical] groupwe need creativity. On formulation (we
need) a senior guy who could guide the group."
Finally, there was some recognition about the importance of
Organizational structure. The CEO told me "There are some
shifts in the commercial and medical side," and the CTO
argued he couldn't provide adequate leadership, "Not with
the organizational structure the way it is."

Within the next month a moderate shift occurred
(N=4). This impacted all the resource categories.
Having made some decisions around potential partners, the next
competence to learn was 'Sticking to their
decisions.' The CEO describes this beautifully: "Last
Friday...we made a decision. Lock them in [the current
potential partner]. Then [another possibility] calls.
You say, let's review that decision." Confirming this
problem a top Marketing manager scoffed, "Every day it's a
different deal. He loves doing The Deal." Secondly,
the technology shifted from Development to
Commercialization. In the controller's words, "The key
for this year [is to go] from R&D to production and
manufacturing, scale up." At the same time, a third
resource was specific Skills and expertise. "Technical
expertise. That's what we've been acquiring,"
suggested the Manufacturing manager, while the medical Founder
lamented "We're still lacking analytical [people]. On
the formulation side we need a Ph.D.
[technician]." Fourthly, these resource shifts
corresponded to development of the Organizational infrastructure.
"On the business side we're trying to organize
structure" {Research Director}. The Controller
suggested "[We're] developing the team as best as we can
now. The second most important resource is (major) lab
equipment."

Major, punctuated changes occurred at ApplySci after the
following month. In the process of realizing a strategic
partnership they reorganized into a matrix structure,
focused around a specific industry and a strict project
timeline. Simultaneously new budgetary controls were
implemented for all departments. Over the next three weeks
the analytical department grew by 100% (from 2 to 4), a key
partnership agreement was signed, and primary technical work
tasks were reorganized around the new project. In the
words of the new Project manager, "The whole company except
five people are working together for one goal. That's a major
shift in the corporation." "We're growing
up" said the entrepreneur. This change occurred
between the third and fourth data collection period.

As expected, the resource constellation was quite
different after the punctuated shift; on the fourth DCP the three
resources were characterized by tension and a lack of coherence
in the company. Like moving into a new home, individuals were
having trouble adopting to the many changes. The most
salient issue was "Dealing with their new
identity." This was expressed for example about the
new analytical department: "There was a lot of elbowing to
decide who will be leader over there....People are jockeying for
who to be political with," analyzed the Project scientist. A
deeper problem was uncovered by the new Project manager:
"[The Director of Analytical] didn't 'take' in this culture.
The team decided to exclude him." A Senior scientist
put it more broadly, "I can see some disagreements in
management; these are negative trends."
Secondly, this tension was expressed culturally, especially in
Communication problems and flows of information.
"People aren't aware of the lack of communication. The
chains are still lacking" {Development specialist}.
Following other problems the Project scientist suggested "A
little bit of respect would have gone a long way. There are a few
things to deal with, like a little bit of
communication." Thirdly, a similar Tension
with the material itself became very salient. "The
material is not cooperating with us," the Project manager
quipped seriously. "That means it's a lot more work,
devising tests, and screening new tests." "I
think right now we're focusing on what our problems are"
determined the Development specialist." A summary of
all these shifts is given in Exhibit
#4 [above].